Home / Knowledge / News / Apparel/Garments / Vietnam garment sector braces for TPP
Vietnam garment sector braces for TPP
22
Jan '16
In order to take the complete benefit of Trans-pacific Partnership Pact (TPP), a free trade agreement involving 12 nations, the Vietnam National Textile and Garment Group (Vinatex) will increase the local content of its products to 60 per cent by 2018, according to Vietnam media reports.

Vinatex recently put into operation two yarn making factories and a dyeing-weaving plant, in order to get benefited from the “Yarn Forward Rule”. This rule requires the TPP member country to use a only yarn produced in any other TPP member country to receive duty-free access. Vinatex will also produce around 12,000 tonnes of knitted material a year. Apart from this six other garment making plants are also expected to be completed this year, said Vinatex chairman Tran Quang Nghi.

TPP will bring down the taxes by 100 per cent for Vietnam, as a result the Vietnamese textile and garment industry will get a boost in terms of volume and turnover. However, the actual benefit will take some time as the TPP needs to be approved by parliaments of all member countries before it can be implemented.

Meanwhile, Vinatex general director Le Tien Truong said that global demand for textiles and apparel will stay at around the same level this year as it was in 2015 since except for the US, major markets like Japan and Europe are showing low economic growth. He expects Vietnam's textile and clothing sector to grow at around 12 per cent this year.

The moves of countries in the region to devaluate their domestic currencies has reduced the production cost in those countries compared to Vietnam's, which might let the buyers to switch orders to other countries like Indonesia, Myanmar and China, said Nguyen Xuan Duong, general director of Hung Yen Garment Company (Hugaco). (NA)

Fibre2fashion News Desk - India


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search